Tuesday, October 5, 2010

Indonesia goes "John Galt"

Tired of the fiat national rupiah always losing value through inflation, some Indonesians are going "John Galt"! They are unhitching from the system and creating their own free market money. They have created the Gold Dinar and the Silver Dirham, and they seem pretty happy about it!

The dangers of disconnecting financial capitalism from the marketplace of reality.

When the dollar and the financial marketplace was based on the gold standard, it was backed by actual wealth and amount of gold in existence. Now that we have disconnected from the backing of gold, we can and have invented an unlimited source of currency, material and electronic, that is not backed by reality. We do not have a healthy version of financial capitalism, and the structure of the marketplace that our government has created has removed the natural checks that the marketplace usually uses to keep itself in a healthy balance.

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